Ray Dalio, the founder of the Bridgewater hedge fund company, is cutting his exposure to risk because of his concerns about stability in Washington.
“While I see no important economic risks on the horizon, I am concerned about growing internal and external conflict leading to impaired government efficiency (e.g. inabilities to pass legislation and set policies) and other conflicts,” Mr. Dalio wrote in a post.
Other investors have also grown cautious about market turbulence, including Dan Ivascyn of Pimco and William A. Ackman of Pershing Square Capital Management.
In his LinkedIn post, Mr. Dalio pointed to gaps in wealth and income, noting that “the majority of Americans appear to be strongly and intransigently in disagreement about our leadership and the direction of our country. They appear more inclined to fight for what they believe than to try to figure out how to get beyond their disagreements to work productively based on shared principles.”
His response will be to “continue to closely watch how conflict is handled while tactically reducing our risk to it not being handled well.”
So will we see departures from President Trump’s inner circle this week from the likes of the Treasury secretary, Steven Mnuchin, or Gary Cohn, the chief economic adviser?
Probably not, may be the right answer.
The business world has not washed its hands entirely of the Trump administration and the en masse resignation from business councils last week was hardly more than a symbolic gesture.
Mr. Mnuchin responded to calls for him to resign by saying, “I believe that having highly talented men and women in our country surrounding the president in his administration should be reassuring to you and all the American people.”
To that point, he has a legitimate résumé of real experience. And there is the question of who will be lining up for his job if he leaves. So there is something to be said for Mr. Mnuchin and Mr. Cohn remaining in roles close to the president, even if they cannot sway him, Mr. Sorkin writes.
The bigger issue may be whether the Mr. Trump will tolerate his inner circle portraying those roles as rescuing the boss from his own missteps.
The Chinese Company Still Looking Abroad
Beijing’s clampdown on overseas acquisitions appears to have done little to deter the Great Wall Motor Company.
The Chinese automaker said on Monday that it was interested in buying Jeep, the quintessentially American car brand owned by the Italian-controlled Fiat Chrysler.
Great Wall would have some distance to go before acquiring Jeep: For one thing, Fiat Chrysler said it had not heard from Great Wall.
Still, the interest reflects China’s enthusiasm for becoming a global force in the auto industry. It could also be good timing for Fiat Chrysler — its chief executive Sergio Marchionne has signaled his interest in selling Jeep.
It would also give Great Wall what Chinese automakers lack: brand recognition. And following in the footsteps of Geely Holding, which bought Volvo, Great Wall could join a shift to electric cars.